GSM networks can also operate on several different radio frequencies, and not all GSM phones support every frequency used globally. A network lock is generally built into a phone by the manufacturer, and can come in several forms, depending on the phone, region, and carrier. For the most part, a phone will only work with a SIM card from one provider. It is also possible to lock a phone to an individual SIM card or to SIM cards from a particular country, though these methods are less common.
Generally only GSM phones include such a lock, as the underlying technology of other types of networks keeps consumers from switching carriers. Locked phones are often sold at a heavily discounted price or given away to attract new customers. Telcos typically provide services to unlock their SIM locked phones. Such a service might cost a fee or require you to terminate an agreement if the phone was purchased on a contract — which could also incur some extra costs, depending on the telco and plan.
Other telcos might unlock your phone for free after a certain period of time, usually after the contract if any has been successfully fulfilled and the phone has been paid in full.
There are also third party companies online that can unlock your phone , but that will also cost you some money. Telcos find SIM locks beneficial because it helps keep customers on board. Because switching to a different telco requires a series of extra steps to first unlock a SIM locked device, customers might be discouraged and abandon their desire to move to another service provider.
Locked phones benefit the service providers the most. This process discourages customers from leaving their telco for greener pastures. Unlocked phones benefit the consumer the most. SIM locks give telcos the option to restrict a phones usage to their network alone. These locked phones benefit service providers because they make it difficult for consumers to switch to other telcos when they find a better offer.
To unlock your phone, you might have to spend some money. Having worked in 3 countries for 4 telcos on both voice and data products, Neil is in a position to give you the inside track.
The providers subsidize the purchase or even provide the phone free of charge with a mandatory monthly contract usually with a duration of about two years. This can shave hundreds of dollars off the price of the purchase, which makes the contract more attractive for new customers. With the binding contract being signed in return for the subsidized price, providers are able to protect their investment by recouping the cost of the subsidy gradually over the life of the contract.
In order to purchase an unlocked phone that may be used in any carrier network, the phone must normally be purchased at the full retail price. Some locked devices are able to become unlocked by discarding the current SIM card in the slot and replacing it with a new card provided by your new carrier.
However, some phones have additional firmware that may make them incompatible with some carriers or features that will only work with the intended carrier.
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